The crypto community is abuzz with concerns following a substantial crypto transfer. An FTX wallet, associated with the bankrupt crypto exchange FTX, has moved $10 million worth of digital assets from the Solana network to Ethereum.
This development has raised worries about the possibility of a series of token dumps as part of the exchange’s bankruptcy proceedings.
According to data from blockchain analytics platform Arkham Intelligence, the FTX wallet initiated significant transfers since August 31st.
The wallet has shifted $6.23 million worth of Ether and over $4 million in various altcoins. These altcoins include $1.2 million in FTX Token, $1.8 million in Uniswap, $1.3 million in HXRO (HXRO), $550,000 in SushiSwap, and $260,000 in Frontier Token (FRONT). These assets were moved to another FTX wallet through the Wormhole Bridge.
FTX had put forward a proposal on August 24th, suggesting the appointment of Mike Novogratz’s Galaxy Digital Capital Management as the investment manager tasked with overseeing the sale and management of the exchange’s recovered crypto holdings.
According to the proposal, the FTX estate would have the authority to sell up to $100 million worth of tokens per week, with the potential to raise this limit to $200 million on an individual token basis.
These limits are designed to mitigate the impact of token sales while ensuring that FTX can meet its obligations to creditors.
In addition to this plan, the exchange also filed a separate motion to hedge its larger holdings of Bitcoin and Ether.
While these proposals are not yet legally binding, the matter of FTX token sales is scheduled to be addressed in the Delaware Bankruptcy Court on September 13th.
During an April 12th hearing, FTX disclosed that it had recovered approximately $7.3 billion in liquid assets, with $4.8 billion of that sum consisting of assets recovered as of November 2022.